Alberta posts first-quarter operating surplus on higher revenue

CALGARY, Alberta Aug 29 (Reuters) - The Canadian province
of Alberta, home to most of the country's oil and gas
production, said on Thursday it had a C$715 million ($680
million) operating surplus in its fiscal first quarter as
revenues rose above expectations.

The province said operating revenue was C$9.9 billion, C$211
million above what it forecast in its March budget, while
spending was C$9.2 billion, down C$113 million.

The provincial government, which has posted six-straight
budget deficits, said in its budget earlier this year it would
borrow C$4 billion to fund badly needed schools, roads and
hospitals. However fiscal first-quarter borrowing was C$494
million, C$304 million lower than projected, as it spent a total
C$1.4 billion on capital items.

The government also said it has so far spent C$704 million
on relief efforts following record floods that swept through the
province in June.